Employers (US:EIG)2025-10-30 20:24Financial Performance - Gross premiums written for Q3 2025 were $183.9 million, a 1% increase from $181.2 million in Q3 2024[4] - Net premiums earned increased by 3% to $192.1 million in Q3 2025, compared to $186.6 million in Q3 2024[4] - Net (loss) income for Q3 2025 was $(8.3) million, a decrease of 127% from $30.3 million in Q3 2024[4] - Total revenues for the nine months ended September 30, 2025, were $688.2 million, up from $664.1 million in the same period of 2024[10] - Adjusted net (loss) income for Q3 2025 was $(25.5) million, a 226% decrease from $20.2 million in Q3 2024[10] - For the three months ended September 30, 2025, the net loss was $8.3 million compared to a net income of $30.3 million for the same period in 2024, representing a significant decline[13] - Adjusted net loss for the nine months ended September 30, 2025, was $25.5 million, compared to an adjusted net income of $20.2 million for the same period in 2024[13] - The net loss for the three months ended September 30, 2025, was $(8.3) million, compared to a net income of $30.3 million for the same period in 2024[24] - Adjusted net loss income for the three months ended September 30, 2025, was $(25.5) million, while for the same period in 2024, it was $20.2 million[24] Underwriting Performance - The combined ratio excluding LPT for Q3 2025 was 130.4%, compared to 101.2% in Q3 2024[4] - The GAAP combined ratio for the three months ended September 30, 2025, was 129.7%, compared to 100.4% in 2024, indicating a deterioration in underwriting performance[15] - Losses and LAE incurred for the three months ended September 30, 2025, were $186.6 million, significantly higher than $117.7 million in the same period of 2024, marking a 58.6% increase[15] Shareholder Metrics - Book value per share increased to $45.76 in Q3 2025, up 4% from $44.20 in Q3 2024[4] - Cash dividends declared per share increased by 7% to $0.32 in Q3 2025, compared to $0.30 in Q3 2024[4] - Stockholders' equity decreased by 5% to $1,039.2 million as of September 30, 2025, from $1,093.4 million at the end of 2024[7] - Stockholders' equity at the end of the period was $1,039.2 million, down from $1,093.4 million at the end of September 2024, reflecting a decrease of 4.9%[13] - The average stockholders' equity for the three months ended September 30, 2025, was $1,061.2 million, slightly up from $1,058.2 million in 2024[13] - The return on stockholders' equity for the three months ended September 30, 2025, was (0.8)%, a decline from 2.9% in the same period of 2024[13] - Basic earnings per share for the three months ended September 30, 2025, was $(0.36), compared to $1.22 for the same period in 2024[24] - Book value per share as of September 30, 2025, was $45.76, reflecting a year-over-year increase of 6.3%[21] - Adjusted book value per share as of September 30, 2025, was $51.31, with a year-over-year increase of 5.5%[21] - The average common shares outstanding (basic) for the three months ended September 30, 2025, was 23,247,221, down from 24,858,159 in 2024[24] Asset and Investment Overview - Total assets as of September 30, 2025, were $3,526.4 million, a decrease of 3% from $3,617.3 million at the end of 2024[7] - Total investments and cash as of September 30, 2025, amounted to $2,546.7 million, an increase from $2,532.4 million at the end of December 2024[19] - The net unpaid losses and LAE at the end of the period were $1,429.8 million, compared to $1,423.4 million at the end of September 2024, indicating a slight increase[17] - Stockholders' equity as of September 30, 2025, was $1,039.2 million, down from $1,083.1 million as of June 30, 2025, representing a decrease of 4.1%[21] LPT Agreement Impact - The impact of the LPT Agreement on net income for the three months ended September 30, 2025, was $(1.3) million, compared to $(1.5) million in 2024[24] - The deferred reinsurance gain reflects the unamortized gain from the LPT Agreement, which is being amortized using the recovery method[27] - Management believes that non-GAAP measures excluding the effects of the LPT Agreement provide a meaningful understanding of the company's ongoing underwriting performance[26]